It’s Deductible!

Ah yes, I remember my first business. I had such an easy justification for spending beyond what was necessary — “It’s tax deductible!” But remember that portion of the expense that is “tax deductible”? It’s still coming out of your cash coffers, risking the possibility you’ll be short of truly essential moula for later expenses.

All non-essential business expenses are best spent only after you have sufficient reserves to cover your business’ inevitable cash dips, and a reliable model for projecting your future cash needs.

But if everything I’ve just said sounds like Peanuts’ schoolteacher talk, check out the next mobank class that I facilitate for small business owners. You’ll be speaking conversational accounting soon after instructor/banker Julie Nelson Meers teaches you how to read financial statements and use your existing financial information to make better business decisions!

2 Responses to It’s Deductible!

Great post Jodie! I certainly fall victim to the “it’s deductible” justification from time to time, and this helps me to remember that I need a better reason to spend on non-essentials. Now, I just need to figure out how to determine what’s essential and what’s not.

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I'm a lifelong entrepreneur who mentors others pursuing their personalized definitions of Fun AND Profit. We bring our pets and kids to the work we love, lunch on local food, and use money to buy our creative freedom.